The city was founded in 1888 and was designated the capital of French Somaliland three years later. The city has some beaches along its eastern shore. Today it's mostly notable for its harbor, which accounts for much of the local economic activity.

Train services have resumed with two weekly services from Dire Dawa, with a connecting bus from Addis Abeba. Journey times are long, up to 20 hours. A first class ticket sets you back around 150 Ethiopian birr.
The 11.527443.13172Nagad railway station is located near the airport, south of the city.

Get around by Green TaxiCabs. Some people will tell you to avoid the taxis with the drivers chewing khat, which is a natural, amphetamine-like stimulant. It gives the local Djiboutians and Somalis something called Merran, which is the Somali word for 'energy'.

Taxis cost from 500 Fdj to any amount, depending on distance. For example: Camp Lemonier to the city centre cost 1,500 Fdj. Negotiate and you may get a lower price, but there are better things to do than to argue over 500 Fdj.